VISTA LAND and Lifescapes, Inc. (VLL) targets to hit a P10-billion net income in 2018, amid a solid growth performance so far in 2017 driven by the continued positive sentiment in the real estate sector.
VLL President and Chief Executive Officer Manuel Paolo A. Villar said the company is bullish on the property sector as the government’s infrastructure projects are seen pushing demand for more residential and office spaces.
“It’s the liquidity that’s in our sector that’s very good. And the anticipation of infrastructure. Clearly when you build infrastructure it drives the rest of the property up, so since we’re building infra all over the country I think it’s causing an increase,” Mr. Villar said in a press conference in Makati City on Wednesday.
VLL’s profit guidance for 2018 is 11% higher than its P9-billion profit target for this year.
In the July to September period, the company’s net income attributable to the parent climbed 6% to P2.57 billion from the P2.41 billion in the same period in 2016. This comes on the back of a 4.5% increase in revenues to P8.65 billion.
The third quarter results pushed VLL’s nine-month attributable profit to P6.95 billion, 11% higher than the P6.25 billion posted in the same period in 2016. Revenues, meanwhile, rose 11.8% to P26.86 billion during the period.
VLL attributed its positive financial performance to robust demand for its residential properties, which accounted for bulk of its revenues at P20.8 billion. It cited the growth in disposable income and overseas Filipino workers’ remittances as reasons for the continued strong demand for properties.
The company’s Camella brand contributed over 75% of real estate revenues, followed by Vista Residences, Inc. at 15% and Crown Asia Properties, Inc. at 4%.
With 44 residential projects launched during the nine-month period worth P46.1 billion, Mr. Villar said they could easily reach more than P60 billion by the end of the year.
Leasing income grew by 30% to P4.3 billion during the first nine months of the year, alongside the company’s target to end the year with 1.3 million square meters of gross floor area (GFA) split between mall (85%) and office spaces (15%). By the end of September, the company’s total GFA was at 1.02 million sq.m.
“We’ve added a significant amount of space in the last three quarters, so we’re well on our way. I think we’ll be adding a little more space at the fourth quarter… I think we’ll be able to comfortably achieve that,” Mr. Villar said.
The company has already spent P25.2 billion out of the P35.3 billion in capital expenditures it allocated for 2017.
“Clearly we have good growth this year. We’re going to achieve our guidance this year, we’re also looking at a good year next year. So we’re quite bullish on the prospects on (VLL) both in the residential and commercial,” Mr. Villar said.
VLL is currently present in 132 cities and municipalities, and 46 provinces. The company is targeting to reach 200 cities in the long term.
Shares in VLL were up by 0.49% or three centavos to P6.13 each at the stock exchange on Wednesday. — Arra B. Francia